AI-Enriched KPIs Yield Impressive Results - by Patricia Ames, Workflow

Great Article over on Workflow regarding Ai and KPI's

From the piece, "The year 2024 is picking up right where 2023 left off. Last year was the Year of AI, with the likes of Open AI’s ChatGPT and the promise of even more advancements capturing the public’s interest. This year is trending to be the year AI transforms the way businesses run. 

Businesses are not only going to deploy AI more often in 2024, but they’re going to deploy these tools in much more integral and substantive ways."

Read it Here.

Quick Points:

1. AI Integration into Business Operations: Businesses are set to significantly integrate AI in 2024, shifting from merely automating tasks to deploying AI for strategic goals and enhancing key performance indicators (KPIs).
2. New AI-Enhanced KPIs: Research by MIT Sloan Management Review and Boston Consulting Group highlights how companies are using AI to develop new KPIs, with 34% of surveyed organizations creating new KPIs and 90% reporting improvements in their KPIs.
3. Three Types of AI-Enhanced KPIs: The research categorizes AI-enhanced KPIs into Smart Descriptive, Predictive, and Prescriptive KPIs, each offering unique insights and recommendations for business optimization.

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250-Word Summary:

In 2024, businesses are not just experimenting with AI but are integrating it deeply into their operational strategies. This year marks a pivotal shift where AI moves from automating peripheral tasks to playing a central role in strategic decision-making and performance evaluation. 

A significant part of this transformation is the adoption of AI-enriched key performance indicators (KPIs), as highlighted in a study by MIT Sloan Management Review and Boston Consulting Group. This study, which surveyed over 3,000 managers from diverse companies, found that 34% of organizations are now using AI to forge new KPIs, with a staggering 90% witnessing improvements in their performance metrics.

These advancements in AI-enabled KPIs are categorized into Smart Descriptive, Predictive, and Prescriptive KPIs. Smart Descriptive KPIs analyze historical data to provide insights into what happened or is happening, offering a refined understanding of business operations and customer interactions. 

Predictive KPIs, on the other hand, forecast future performance, enabling businesses to prepare for upcoming demands and trends. Prescriptive KPIs go a step further by suggesting actions to enhance business performance based on these forecasts.

Read the entire piece, here.